. Breathing space is an essential element leading up to that moment as well, the moment when the agent encounters and strives to wow a live customer on the line. 50% of the customers shopping from Zappos do return for further purchases. In fact, it's the Zappos company purpose: "To live and deliver 'WOW! In the business universe, at a micro-level customer is like the nucleus of an atom, and at a macro level, the customer is like the center of the solar system. My visit with Hsieh (in theory pronounced Shay, but everybody calls him Tony)continues in this funhouse manner for the rest of my time at Zappos new headquarters. Zappos wanted top quality and the best resources handling its customer service, and the high rents at San Francisco and competing ecosystem meant that they could not get the best talent for their budget. At Zappos Insights, Foley inspires other companies to make their work environments better and more fulfilling. Be adventurous, creative, and open-minded. Introduction to digital marketing 2. Johnnie Walker The legend that keeps walking! Type above and press Enter to search. They put the contact information at the top of every single page of their website, because they actually want to talk to customers. Each Zappos employee needed to understand that customer experience is a priority for the whole company, not just a department. Thus, I decided to send him a care package, and in it, I included a Zappos culture book, Rice Krispies treats, a five-pound gummy bear and a 12-inch, hand-stitched teddy bear that I aptly named Tommy.. Build customer experience strategies backed by the data in your contact center, offering them $2,000 to quit after 2 weeks of training. They dont use scripts because they trust employees to use their best judgement when dealing with each and every customer. We tell our new recruits that they are the empowered ones and can do what's necessary to make their customers happy. It may be hard to believe that an upstart company purchasing shoes from brick and mortar stores, and then turning around to sell them online, has become a mainstay in online retail. Tony Hsieh is sporting a Mohawk, the first Ive encountered atop a gainfully employed billionaire. Join us on our mission to build the first Unified Customer Intelligence Platform, Read the latest coverage about Chattermill in the news. To assure both current and potential customers you have their . P.S - We'll be publishing a bi-weekly column here on Chattermill.com presenting a brief CX analysis of thought-provoking companies and events in tech. Amazon supports us in continuing to grow our vision as an independent entity, under the Zappos brand and with our unique culture. Generous may be an understatement. If you enjoyed the blog why don't you check out our previous company profile on Zoom. Navigating legal and regulatory changes can be challenging, but it's fundamental for entrepreneurs to ensure that their businesses are compliant. The chalkboard has a second sector of hand-drawn stats that youll never see compiled at any other contact center, these telling how many flowers, cookies, postcards and unnamed wow gifts have been sent to customers in the previous month and previous year. Four hours does seem long to me on the email front (I counsel customer service consulting clients that every hour seems like a day in internet time; after just a couple hours not hearing from you, customers start to assume that a companys never getting back to them), but more, I was impressed that the Zappos volume is weighted six- or sevenfold toward the telephone as opposed to email or chat. And after the call I felt moved to send her some flowersjust one of the 380 gifts of flowers you can see on the board that we sent out last year. Speakers from Amazon, Wise, and H&M provide critical CX insights. Zappos positions itself as A Service Company That Happens To Sell Shoes. The top management was not averse to the prospect of having Zappos Airline and Zappos Hotels someday. The new hidden asset of Zappos is Chattermills platform. Given below are the five most important lessons you can learn from Zappos' customer-first approach. Not an offer to skip the course, or take some additional holiday. But an important difference in which Amazon and Zappos complement each other is that Amazon approaches customer service with data, analytics, and such left-brain-driven methods and Zappos customer service strategy is more about connection, empathy, and softer right-brain aspects. Is Michelin Star by the same Michelin that sells tires, yes, it is! All Zapponians know that delivering amazing customer service is what's at the heart of our organization. Why is this contact center overstaffing necessary? This encourages people to leverage the advantages of online shopping and simultaneously removes the drawbacks. Tony is insistent, however, that this differentiation isnt achieved through the website; its a result of how people are treated when they actually interact with Zappos. Screening for culture and values alignment is as important as screening for technical skills. Talk with a customer on the phone for 10 hours and 29 minutes. Unfortunately, the internet connection, ironically, is terrible, and we never get to see the full segment. No matter how great the product was!! We originally published this post on September 9, 2016, and we updated it on February 6, 2019. Either way, Zappos is depending on customer service as marketing, trusting that the intimate engagements theyre having are enough to cement the loyalty of the customers on those calls and ensure that word of the Zappos brand will spread. Share that feedback with all of your employees and celebrate the happiness that they were a part of delivering. It not only builds engagement but reaffirms your focus on delivering customer satisfaction. And, that often means connecting with customers outside of their short customer service interactions. In fact, Zappos culture was once perfectly described as beingproudly-weird. I think the main thing is just trust [the customer service reps] and let them make their own decisions. But that employee empowerment doesnt come naturally. Technology is starting to replace many conventional human interactions, but is that a good thing? Yahoos story or case study is full of strategic mistakes. But cmon! Click here to check them out! The reason that wow fails to take root or be sustained at most companies is that success here requires the support of an entire organization, all the way up to the highest levels of leadership. "Empowerment" may seem like a buzz word, but you really do need to let your employees make the final call for the customer's sake. Its the key to how we build customers for life., Half an hour later, Tony himself points to the telephone as the differentiator of the Zappos customer experience. Candidates have to pass both sets of meetings to be hired. If only one could order a dozen shoes, try them out, keep the best, and return the rest of course with no extra cost! And whatever you do must have an emotional impact on the receiver. Today Zappos is world renowned for its culture. Once the core values were set, we began incorporating them into every aspect of Zappos; from hiring and onboarding to tough business decisions and customer interactions, our clearly defined core values have become the core of what makes Zappos Zappos. Our hope is that this is something fun and interesting that you can read while on your commute or in between heavy lifting at work. In fact, the right customer service strategy can - and should - support your sales. These sage words were given by Jeff Bezos just after Amazon acquired Zappos. By 2004, Zappos gross sales had reached $184 million and had received an additional $35 million from Sequoia Capital. Specifically, if someone wanted to start a fitness habit such as running, cycling, or home-workout, he/she would mostly be looking for sports attire, especially for a good pair of sports shoes. After this, Kelli recruited help from her fellow Zappos agents, and they sent dozens of packages, supplies, and thank you cards to all the soldiers at Tommys base for the holidays. Surprisingly, it had nothing to do with shoes. The new approach was very successful, and Zappos scaled it by insourcing operations to increase efficiency and by expanding the product line to handbags, eyewear, and other clothing, to benefit. The 5-Step Guide to Navigating Legal and Regulatory Changes in Business. In other calls, Madison will deliver wow by upgrading shipping to get shoes to a customer in time for a special event, or even gift a customer with the mis-delivered shoes they received, so they can donate them or give them to a friend rather than going through the hassle of returning them. Ultimately, the customer regained hope that the upcoming wedding would be other than a torture-fest, at which point, browsing together while still on the call, Madison and the customer managed to find a new, likely candidate for pain-free but dressy footwear. Customer Service: It should always be capitalized. Zappos and its motto of Delivering Happiness seem to be on the right path in the decade ahead. When your absolute bottom line is, as it is at Zappos, to make an emotional connection with each caller, it creates great variability in call length. For over 5 years, and their strategies have played a significant role in their growth. Zappos releases a culture book every year. At Zappos, they believe if you get culture right, most of the things - like great customer service, or building a great brand will happen naturally on its own. Great customer service is essential in 2022 Learn why consumers are willing to spend 17% more with companies that deliver superior customer experiences. Sharpen Technologies Inc. Develop a leadership purpose that combines your company goals with your agent well-being and performance to drive empowerment like Zappos. 6. Putting customers at the heart of everything and Delivering Happiness is its main motto. The dot com bubble had just popped and even if someone wanted to raise money as an internet company. We make sure that employees are here for more than just a paycheck. In a world where most consumer products spend most of their marketing on paid advertising, Zappos does the complete opposite. Theres the story of an agents 10-hour phone call whereservice was put before metrics. Zappos runs at just 60 to 70 percent agent occupancy rather than following the industry norm, which is somewhere in the 80s. Running a warehouse 24/7 isnt a cost effective strategy when it comes to running a delivery business. Create fun and a little weirdness. . Making exceptional service a critical part of the culture of the company itself. But Zappos is different. 2. Deliver wow through service. I try to do one uncomfortable thing every day.. Next article, Ill revisit Zappos to consider how its proudly-weird culture does, or doesnt, fit into the customer service picture. I'm Buying Your Customer Experience, Not Your Product. Zappos crossed the $1 billion gross sales mark in 2008. 2) Customer Service Strategy- Theoretical Foundations: 3) Zappos's Expansion: 4) Zappos' Marketing Strategy: Zappos.com Information: Download these Free EBooks: 1. Why does Teslas Zero Dollar Budget Marketing Strategy work? The Zappos Customer Loyalty Team, Las Vegas. Were actually experimenting with ways to get more people to call because its such a valuable marketing and brand builder for us.. make employees happy, so they can make customers happy. Learn to build a culture rooted in purpose and rally your agents around that shared purpose, Use Sharpen Insights to improve your interactions (not just your metrics), 4 Ways Banks Can Hyperpersonalize Customer Experiences at Scale, How to Use Data (And Your Instincts) to Evaluate Your Next AI Project, 5 Ways to Prepare Your Contact Center for a Recession. Narrowly speaking, its true: Zappos takes the telephone experience very, very seriously. Too many companies think of their call centers as an expense to minimise. - Tony Hsieh, CEO @ Zappos. And they offer employeesvaluable incentives, like: continued learning through Zappos University, the opportunity to find a new career path with internal Shadow Sessions, a network of life coaches, flexible work schedules, and volunteer opportunities. Let us explore the importance of having a good customer service strategy. Both have been highly effective, and it's become clear that there isn't a singular way to achieve customer satisfaction. Here's Where Average Monthly Mortgage Payments Are The Lowest in The U.S. Now is the Best Time to Migrate From Avaya. A strong customer service strategy is not just a feel-good factor notionally but also makes good business sense with enough supporting data to it. One that we regularly follow. In fact, it's the Zappos company purpose: "To live and deliver 'WOW!'" Christa Foley. As Zappos continues to transform and scale, we want to ensure the four C's remain top of mind in our day-to-day business operations. Zappos' customer service is built on one objective: to deliver customer delight and happiness. We share the keys of its success with you. Companies known for their customer service, like Zappos, set a standard in service that other companies have to match now, too. Now you dont have to put those $90 Nikes on Craigslist. Well, thats good newsbut, seriously, what did they talk about? I persist. They actually encourage customers to call their customer care numbers. And they staff their contact centre 24/7. So investing in good customer service increases customer experience which in turn increases customer loyalty and CLTV, resulting in better topline and bottom line. Zappos developed a set of key values that lives at the heart of their company culture. However, Zappos sale came at a time of dire straits. Zappos, who until then operated in San Francisco, decided to move their Customer Loyalty Team to Las Vegas. I told her not to bother returning them; that we would refund her money but she was free to give the boots away instead of returning them. To develop a great culture, companies have to create aset of core company values for your company to rally around. This board, the Daily Breakdown Report, is a lot simpler than the kind of call analytics youll find at traditional contact centers. It sells an idea!! Heres Why. If the employee doesnt take the payout after two weeks, Zappos leaders introduce them to an entirely human way of work. Hsieh doesnt analyze every expense of customer service or thecontact center. So how do you maintain the culture that you want as you grow? Every Zappos employee we encountered seemed to be genuinely interested in helping us answer our questions . All Zapponians know that delivering amazing customer service is what's at the heart of our organization. The 10-hour phone call, which has become an essential part of Zappos lore(akin to the tire-refund legend at Nordstrom, that other customer-focused company) is no joking matter to Tony, butto lighten the mood, he pulls up a Jimmy Fallon segment on his laptop where the agent on the Zappos end of themarathon call finally gets to meet the customer he was speaking with. The customer service strategies behind Zappos' success that you can implement today. June 6, 2016. They dont hire like normal brands, they dont treat culture the same as most brands, and they go about delivering profits differently than most. The first is to assess the candidate's technical capabilities, making sure he or she can actually do the work the position calls for. The company was founder Nick Swinmurns brainchild and had an initial investment of $2 million from Tony Hsieh and Alfred Lin from Venture Frogs. We want employees that believe in our long term vision, and want to be part of our culture. So how did they become the most customer-obsessed brand in the world? There are concerns about fit, feel, colors, textures, and many such things. At Zappos, we developed our core values using feedback from all of our teammates. Zappos focused on providing an exceptional customer experience through fast and free shipping, a 365-day return policy, and 24/7 customer service. After Kelli shipped a new pair of shoes to Tommy and ended their convo, she felt the urge to do more. Meet Zappos. By 2002, Zappos was running out of runway. There is no script given or upselling attempt in these calls. Apple A Unique Take on Social Media Strategy. One of the most popular peer-to-peer programs at Zappos is the co-worker bonus. The criteria? When that one call comes in, Zappos will do anything to make sure its an engaging and personable experience for the customer, in the hope that a single great phone interaction will serve as a proxy in the customers mind for the overall personality of this companythat this company wants to be my friend, to put it rather elementarily. Bean, Lowe's, and Alex and Ani. Because to understand Zappos, and in particular Zappos celebrated customer service methodology, Tony isnt the only place you can start. 75% of Zappos purchases come from returning customers. The company exemplifies what it means to make employees happy, so they can make customers happy. Build open and. If youcall most customer service places, if you ask for anything thats not normal they have to talk to a supervisor or just say oh our policy doesnt allow that and whatever. Keeping the Customer Loyalty Teams importance in mind, Zappos came up with a clever customer service strategy in its early days. Our goal for emails is to respond in an hour.. Were talking about the challenge at Zappos of competing directly with its overlords at Amazon.com, often selling the exact same items, and sharing the same technological backend. But whats even more unique about the training course is that after the first week they make an offer to the class. The Zappos leadership team has been contrarian since the beginning and have pioneered the use of social media to gather customer feedback, at a time when most other companies weren't doing that. Create a culture of people who believe in your company's values. To a shortsighted manager or shareholder, breathing space looks expensive. This pandemic made people discover their latent Mozart, Monet, MasterChef, or marathoner. Our relaxed and supportive office environment allows individuals to show up authentically yes, even in their flip flops or footie pajamas. Christa Foley Photo Credit: Zappos. Ryo told me the story behind one of the 2016 flower stats on this board: Last year, when I was working the phones, a woman called, trying to return some boots. Zappos Interview Technique #3: The Service Test A core value at Zappos is creating WOW customer service experiences. But thats followed by a second interview based purely on cultural fit. This starts with promoting the chance to call Zappos round the clockyoure invited to do so right at the top of the Zappos homepage, where, in their signature white on blue color scheme, they proclaim, Customer Service Available 24/7 at (800) 927-7671. Arjun Vasudev is passionate about BITS (Business Innovation Technology Strategy & Products). Its vital you have the technology and text analytics systems capable of analysing customer feedback at scale. After 2.5 years he sold Link Exchange sold to Microsoft in 1998 for 268 million dollars. By launching a gated offer program, Zappos joins a host of other leading brands committed to deeper relationships with their customers. Opinions expressed by Forbes Contributors are their own. But thats exactly what Zappos has done. A customer goes through several steps in the customer journey before purchasing a product/service (refer above diagram). As customer service standards continue to dip, delivering outstanding customer care is a truly fantastic way to differentiate your company from the rest of the herd. Kelli is a perky agent who works the late shift. Zappos was started in 1999 as an online retailer for shoes in San Francisco, USA. You can find this breathing space reflected in the metrics of the Zappos contact center. Stream webinars from the CX industrys pioneering voices, Free in-depth research on the latest Trends in CX, Discover templates to power your customer experience, Benchmark and measure your NPS, CLTV, and sample size. Breathing space is necessary as well when youre hiring for wow; you need the time to find the people with an aptitude for make emotional connections with customers. And did they get bathroom breaks?. This differentiation strategy allowed Zappos to stand out in a crowded marketplace and to continue to grow despite the 2008 economic downturn. Here are the four KPIs they use to monitor, track and improve performance: Measuring Call Quantities Zappos's longest call on record lasted more than eight hours, and guess what? At Zappos, they don't measure call time, theyre longest call was almost six hours long! The first step in your customer experience strategy is to have a clear customer-focused vision that you can communicate with your organization. Further, we don't promote work-life balance in the traditional sense. 101 W Washington Street, Ste. And, with tales of surprise packages and thank you cards, you see how much agents love making a positive impact. Do reach out to Arjun for discussing conversion of ideas to business, cross-mentoring, IoT topics, or random chats about anything and everything. They encourage a fun environment filled with co-creation. Touted as the most valuable car company in the world, Tesla firmly sticks to its zero dollar marketing. Its known for being a little bit weird and they are always looking for ways to improve company culture, no matter how unconventional or counterintuitive the approach may be. Zappos has taken numerous actions to ensure the best customer service, a couple of interesting ones are listed here. He did his MBA from HEC Paris with Strategy specialization and Leadership & Digital Transformation certificates. Back when Zappos was still in its infancy, a lot of people said, "No way will people buy shoes online without even trying them on." Entrepreneur and its related marks are registered trademarks of Entrepreneur Media Inc. How Zappos creates a customer-obsessed culture -- and you can, too. BlackRock, the story of the worlds largest shadow bank. They had the foresight to invest in what was at the forefront, for the long-term; something we can all learn from and apply in our own organizations! We are not an average company, our service is not average, and we don't want our people to be average. 1. BlackRock has $7.9 trillion worth of Asset Under Management which is equal to 91 sovereign wealth funds managed. But because we felt they werent a culture fit, we were willing to sacrifice the short term benefits to protect our culture (and therefore our brand) for the long term. - Tony Hsieh, CEO @ Zappos. What made it unknown but a massive banker? 1. Or it could be a longer discussion of a personal tragedy shared by the customer; this situation crops up more often than youd expect, particularly when a Zappos employee ends up on the line with a grieving spouse whos not sure what to do with recently ordered shoes that were intended for a now-deceased spouse. In the context of Zappos, a company whose stated purpose is To Live and Deliver WOW, wow is typically delivered over the phone, the humble vessel that Zappos considers to be its most important connection with customers. Moving to Vegas was also dictated by the fact that it is a 247 city, and the city never sleeps.

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